U.S. News: Should You Save For College or Retirement?

Saving should be an important part of your financial life. But even in good times when money isn’t tight, it can be tough to prioritize how much to save and which long-term goal to save for. Undoubtedly, saving for the kids’ college and your retirement is a chief concern for many families. Choosing which to prioritize is where it can get tricky, with many families saving for the closer goal – college. However, this U.S. News and World Report actually recommends just the opposite. Here’s an excerpt:

How should you prioritize saving for your children’s college education and funding your own retirement? The prioritization is a very personal thing. Typically retirement comes first and education is a close second. There is only one way to save for retirement and that’s for you to do it. There aren’t many pensions left out there. Never leave 401(k) matching money on the table. That’s free money. Fully save for retirement and if there is money left over, then save for education. There are a lot of ways to pay for education.